Which of the Following Is Correct Concerning the Burden of a Tax

question 151

Multiple Choice

Which of the following is correct concerning the burden of a tax imposed on coffee mugs?

• A) Buyers and sellers share the burden of the tax.
• B) Buyers bear the entire burden of the tax.
• C) Sellers bear the entire burden of the tax.
• D) It depends on whether the buyers or the sellers are required to pay the tax.

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Definitions:

Suggested Retail Price

The retail price recommended by the manufacturer for the sale of a product to consumers.

Unit Retail Price

The price at which a single unit of a product is sold to consumers in the retail market.

Retail Price

The total cost at which a product or service is sold to the end consumer, inclusive of all markups.

US Dollar

The official currency of the United States, widely used as a standard of exchange in international markets.